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Champions Oncology (CSBR)
:CSBR
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Champions Oncology
(NASDAQ:CSBR)
47Neutral
Champions Oncology (CSBR) vs. S&P 500 (SPY)
Market Cap
$135.29M
Dividend YieldN/A
Average Volume (3M)44.41K
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth7.19%
EPS Growth93.82%
CountryUS
Employees210
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.05
Shares Outstanding13,819,236
10 Day Avg. Volume47,274
30 Day Avg. Volume44,414
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.53
Price to Cash Flow (P/CF)-119.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.00Price Target Upside25.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Champions Oncology Business Overview & Revenue Model
Company DescriptionChampions Oncology, Inc. operates within the biotechnology sector, focusing on the development and sale of advanced technology solutions and services to enhance the drug development process, particularly in oncology. The company's core offerings include unique patient-derived xenograft (PDX) models that simulate human cancer tumors, providing valuable insights into cancer biology and facilitating the development of personalized medicine. Champions Oncology's services are crucial in aiding pharmaceutical and biotechnology companies in their research and development efforts to bring innovative cancer therapies to market.
How the Company Makes MoneyChampions Oncology generates revenue primarily through its personalized oncology solutions and technology platforms, which it offers to pharmaceutical companies, academic institutions, and other research organizations engaged in cancer drug development. The company's main revenue streams include the sale of its PDX models, which are used for preclinical testing and drug discovery, as well as its drug testing services that provide critical data to optimize drug development processes. Additionally, Champions Oncology engages in strategic partnerships and collaborations with leading pharmaceutical firms to expand its service offerings and enhance its market reach, further contributing to its financial performance.
Champions Oncology Financial Statement Overview
Summary
Champions Oncology is facing significant financial challenges. The income statement reveals profitability issues with negative margins. The balance sheet indicates financial instability due to high leverage and minimal equity. Cash flow analysis shows negative trends with substantial cash management issues.Income Statement
Champions Oncology's income statement reveals a challenging financial situation. The TTM data shows a negative EBIT Margin and Net Profit Margin, indicating profitability issues. Revenue growth between the last two annual periods was modest at 2.17%, but TTM figures show a slight decline in revenue. The Gross Profit Margin remains relatively stable around 45%, suggesting some level of operational efficiency, but overall negative margins highlight significant financial pressure.45
Neutral
Balance Sheet
The balance sheet analysis indicates financial instability, with a high Debt-to-Equity ratio due to low stockholders' equity. The TTM data shows a precarious equity position, with equity reduced to a minimal amount, raising concerns about financial sustainability. Despite a strong cash position in previous years, current liquidity and leverage pose risks given the high liabilities relative to assets.40
Negative
Cash Flow
The cash flow statement shows negative trends with a substantial decline in free cash flow and operating cash flow, indicating cash flow challenges. The operating cash flow to net income ratio is negative due to operational losses, highlighting the company's difficulty in generating positive cash flows from core activities. Although past periods showed better cash flow performance, recent data signals substantial cash management issues.35
Negative
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 51.60M | 50.16M | 53.87M | 49.11M | 41.04M | 32.12M | Gross Profit |
| 26.31M | 20.75M | 24.34M | 25.48M | 19.57M | 15.24M | EBIT |
| 498.00K | -7.36M | -4.45M | 607.00K | 338.00K | -1.47M | EBITDA |
| 1.94M | -5.05M | -2.07M | 2.23M | 366.00K | -735.00K | Net Income Common Stockholders |
| 401.00K | -7.28M | -5.33M | 548.00K | 362.00K | -1.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.75M | 2.62M | 10.12M | 9.01M | 4.69M | 8.34M | Total Assets |
| 25.24M | 26.13M | 34.31M | 35.38M | 27.59M | 20.75M | Total Debt |
| 6.78M | 7.43M | 8.60M | 9.47M | 9.60M | 3.80M | Net Debt |
| 4.02M | 4.81M | -1.52M | 459.00K | 4.91M | -4.54M | Total Liabilities |
| 24.56M | 28.04M | 29.68M | 26.28M | 20.16M | 15.43M | Stockholders Equity |
| 681.00K | -1.90M | 4.64M | 9.10M | 7.43M | 5.32M |
| Cash Flow | Free Cash Flow | ||||
| 3.85M | -6.97M | 1.08M | 4.11M | -4.96M | 685.00K | Operating Cash Flow |
| 6.09M | -6.14M | 3.96M | 6.50M | -1.68M | 2.90M | Investing Cash Flow |
| -2.23M | -836.00K | -2.87M | -2.38M | -3.17M | -2.22M | Financing Cash Flow |
| 205.00K | -527.00K | 11.00K | 207.00K | 1.20M | 4.42M |
Champions Oncology Technical Analysis
Neutral
9.55
Price Trends
10.17
Negative
7.51
Positive
6.11
Positive
Market Momentum
-0.12
Positive
46.85
Neutral
28.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSBR, the sentiment is Neutral. The current price of 9.55 is below the 20-day moving average (MA) of 10.28, below the 50-day MA of 10.17, and above the 200-day MA of 6.11, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 28.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CSBR.
Champions Oncology Risk Analysis
Champions Oncology disclosed 30 risk factors in its most recent earnings report. Champions Oncology reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Champions Oncology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $10.96B | 22.09 | 23.13% | ― | 18.49% | 176.71% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
47 Neutral | $135.29M | ― | -154.52% | ― | 7.19% | 93.82% | |
42 Neutral | $110.00M | ― | -54.21% | ― | -78.55% | -0.92% | |
38 Underperform | $2.47M | ― | -141.73% | ― | -60.00% | 68.32% |
* Healthcare Sector Average
Performance Comparison
CSBR
Champions Oncology
9.55
4.05
73.64%
EXEL
Exelixis
37.20
14.13
61.25%
TCRT
Alaunos Therapeutics
1.50
-14.80
-90.80%
FATE
Fate Therapeutics
1.01
-6.63
-86.78%
Champions Oncology Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: 7.30% | Next Earnings Date: Jul 17, 2025
Earnings Call Sentiment Positive
The earnings call reflected significant positive developments such as record-breaking revenue, successful data licensing, and improved financial metrics. However, challenges in the biotech sector and uncertainties regarding future data revenue contributions were highlighted. Despite the challenges, the company is optimistic about long-term growth.Highlights
Record-Breaking Revenue and Growth
Champions Oncology had a record-breaking quarter with total revenue surpassing $17 million and adjusted EBITDA hitting a record high. Research service revenue was $12.5 million, an increase from $12 million in the same period last year. The company reported adjusted EBITDA of $5.2 million compared to an adjusted loss of $1.7 million in the prior year.
Successful Data Licensing Agreement
Champions Oncology successfully completed its first data licensing deal, marking the initial validation of its strategic vision to create a transformative data business. Data revenue contribution was $4.5 million, showcasing early traction of the new platform.
Improved Financial Metrics
On a GAAP basis, income from operations was $4.5 million compared to a loss of $2.6 million in the prior year. Total gross margin improved to 53% compared to 40% in the same period last year. Research service margins also improved to 48% compared to 35% in the same period last year.
Strong Cash Position
Champions Oncology ended the quarter with $3.2 million of cash on the balance sheet and no debt. Cash generated by operating activities was $900,000.
Lowlights
Tight Biotech Sector Environment
Despite some improvement, the environment remains tight with a challenging funding environment in the biotech sector. The company is cautious about performance volatility due to uncertainties in the sector.
Uncertain Future Data Revenue Contribution
While the initial data deal is promising, it remains premature to forecast the number of future deals, their average size, or the frequency with which they will occur, making the future data revenue contribution uncertain.
Potential Short-term Volatility in Research Service Revenue
There is anticipation of short-term volatility in research service revenue, with some expected balance related in revenue and cost of sales.
Company Guidance
During the Champions Oncology Third Quarter Fiscal Year 2025 earnings call, CEO Ronnie Morris highlighted the company's record revenue of $17 million, driven by the closure of their first data deal. The core services business, anchored by their industry-leading PDX bank, continues to thrive. Morris noted a cautiously optimistic outlook for the biotech sector, despite a challenging environment. The demand for Champions' multiomic data set has increased, especially with the rise of AI, and the company is exploring ways to maximize its value. CFO David Miller reported that Q3 revenue reached $17 million, with research service revenue at $12.5 million and data revenue at $4.5 million. The gross margin improved to 61%, thanks to high-margin data revenue. Operating expenses decreased, contributing to a record adjusted EBITDA of $5.2 million. Despite short-term volatility, the company reaffirmed its full-year revenue growth guidance of 10% to 15%, focusing on expanding its data business and enhancing profitability.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.